Consumer prices drop 0.2 percent in September

WASHINGTON (AP)

U.S. consumer prices were dragged lower again last month by plunging energy costs, according to the Labor Department.

The consumer price index fell 0.2 percent in September, following a 0.1 percent drop in August. Gasoline prices dropped 9 percent last month after falling 4.1 percent in August. Overall consumer prices were unchanged over the past year.

Excluding volatile food and energy prices, so-called core consumer prices rose 0.2 percent from August and 1.9 percent from September 2014.

The Federal Reserve wants to see annual inflation running close to 2 percent. The overall number is well short of that goal, but core inflation is close. The Fed decided last month to hold off on a long-anticipated increase of short-term interest rates, which it has kept near zero since December 2008.